A Research on the Effect of Fiscal Expenditure for Supporting Agriculture to Promoting Agricultural Economic Growth:An Empirical Analysis on Agriculture Production Contribution Ratio from 1999 to 2003

Agriculture is the base of national economy,and its development need the support by the fiscal expenditure.This paper constructs a production function model with agriculture based on panel data from 1999 to 2003.The empirical outcome shows that the fiscal expenditure for supporting agriculture is helpful to agricultural economic growth.During the years,its output elasticity is 0.13 and its contribution ratio is almost 30%,which ranks second among four factors production contribution ratio.Provinces are divided into the advantaged regions and the disadvantaged regions according to agriculture advantage in province competition.Fiscal expenditure is the most important agriculture economic growth factor in the agriculture disadvantaged regions,and the second most important in the agriculture advantaged regions